Mergers, Acquisitions and Divestitures

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    PGA Tour Raises $1.5 Billion From Group of U.S. Investors

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    The move, which involves the Fenway Sports Group, raises questions about whether a deal to combine forces with Saudi Arabia’s sovereign fund is still necessary.The PGA Tour announced on Wednesday that it had reached a deal to raise at least $1.5 billion from a group of U.S. investors, a move that raises new questions about whether a proposed alliance with a rival tour backed by Saudi Arabia’s sovereign wealth fund will come to fruition.The influx of money into the PGA Tour, which could end up being as much as $3 billion, is led by the Fenway Sports Group, the parent company of the Boston Red Sox and Liverpool Football Club. The tour is simultaneously negotiating a partnership with its well-funded competitor, LIV Golf.That deal, which was announced in June, was effectively an acknowledgment by the PGA Tour that it did not have enough money to compete with the hundreds of millions of dollars the Saudi fund was prepared to put in the sport. A number of prominent players had already left the PGA Tour for the LIV tour.The PGA Tour and the Saudi fund initially set a Dec. 31 deadline to work out details and conclude their alliance. That deadline has since been extended, and the partnership between the two tours has not yet been completed. The question now is whether the deal with U.S. investors changes the PGA Tour’s calculus.The tour’s commissioner, Jay Monahan, said Wednesday on a call with PGA Tour players before the official announcement that the tour “does remain in active and frequent dialogue” with representatives for the Saudi wealth fund. He added that the U.S. investors were “aware and supportive” of its negotiations with the fund, and that he was in Saudi Arabia a few weeks ago to conduct due diligence on the proposed alliance with executives supporting the U.S. investor group.The Saudi fund has made clear that it will continue to compete with the PGA Tour through LIV Golf if there is no alliance. In December, the Saudi-backed tour poached Jon Rahm, the world’s third-ranked player.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber?  More

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      Manchester United Sells 25 Percent Ownership Stake to Jim Ratcliffe

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      The billion-dollar deal leaves the team’s unpopular owners, the Glazer family, in control of the club, but it delegates important responsibilities to their new partner.After a year of rumors, offers, final deadlines and final, final deadlines, the owners of Manchester United on Sunday announced that they had sold a minority stake in the team, English soccer’s most successful club, to the British petrochemical billionaire Jim Ratcliffe.The sale of the 25 percent stake in United, the former English and European champion, was confirmed by representatives of United and INEOS, Mr. Ratcliffe’s company, and announced by the club on social media.In addition to acquiring a significant ownership stake, Mr. Ratcliffe also agreed to provide another $300 million “intended to enable future investment into Old Trafford,” the club’s iconic stadium. As part of the deal, INEOS was given responsibility for managing the team’s soccer operations, granting it effective control over “all aspects” of the United men’s and women’s teams and also the club’s youth academy.The deal concluded a chaotic process that many of the team’s fans had hoped would end with something far more significant: the departure from the club of the team’s current owners, the Florida-based Glazer family, which has controlled United since acquiring it in a leveraged buyout in 2005.Instead, the Glazers will remain the team’s majority owners while netting a sum that values Manchester United around $6.3 billion, or more than five times the amount the Glazers paid to buy it almost two decades ago. And in deputizing the INEOS Sports group — which already has interests in soccer, auto racing, cycling and rugby — to run the soccer operations, the Glazer family may insulate itself from the harshest criticisms of fans.“Through INEOS Sport, Manchester United will have access to seasoned high-performance professionals, experienced in creating and leading elite teams from both inside and outside the game,” the United co-chairmen and brothers Joel and Avram Glazer said.Mr. Ratcliffe, through INEOS, agreed to pay $33 per share for his 25 percent stake, a price that represents a nearly 70 percent premium on the current value of the team’s shares on the New York Stock Exchange.“As a local boy and a lifelong supporter of the club, I am very pleased that we have been able to agree a deal with the Manchester United board that delegates us management responsibility of the football operations of the club,” Mr. Ratcliffe said in United’s statement on the sale. “Whilst the commercial success of the club has ensured there have always been available funds to win trophies at the highest level, this potential has not been fully unlocked in recent times.”Jim Ratcliffe, second from right, outside Manchester United’s stadium, in March. He agreed to pay $33 per share for his 25 percent stake in the club.Phil Noble/ReutersThe sale process began more than a year ago, kicked off by an offhand comment from Elon Musk on social media that he was buying the club. Musk later said his offer had been a joke, but the Glazers were apparently serious about hearing more.United hired the U.S.-based merger and acquisition specialist Raine Group to manage a prospective sale after the firm secured a record price, roughly $3 billion, for another English club, Chelsea. When the Glazers made clear they were open to hearing offers, bidders quickly lined up, including not only Mr. Ratcliffe, but also an American investment fund and a Qatari businessman with links to some of the Gulf country’s most influential figures. Their offers seemed to rise with each new media report.The entire process took place against a backdrop of months of conflicting headlines, fan protests and swings in the club’s stock price — and all as the team, once a fixture at the top of the Premier League standings, struggled for consistency, and wins, on the field.“It’s been a process that’s been all about the best interests of the Glazer family above the interests of the club,” said Duncan Drasdo, a United fan and the chief executive of the Manchester United Supporters’ Trust, a group that has protested the club’s ownership since the Glazers first arrived at Old Trafford.The nature of the original acquisition saw the Glazer family’s late patriarch, Malcolm, burned in effigy, and prompted the Premier League to belatedly draw up regulations so such a transaction could not be repeated. The Glazer family took control after borrowing the majority of the cost of their 805 million pound takeover (roughly $1 billion today) against United’s previously debt-free balance sheet. In the two decades since, the club has paid more than £1 billion in interest and other costs related to the Glazer takeover, while its debt has now surpassed £1 billion, too.The decision to consider even a partial sale was celebrated by the team’s enormous fan base when it was announced in November 2022. By then United had gone almost a decade without a Premier League title, a championship it last celebrated in 2013, and been usurped as English soccer’s dominant club by its cross town rival Manchester City, thanks to the backing of a member of the ruling family of the United Arab Emirates.A similar possibility for United emerged when the businessman son of one of Qatar’s men, the former prime minister Hamad bin Jassim bin Jaber Al Thani, announced his intention to buy the team. That offer was widely promoted on social media by fans, influencers and even former players, including Rio Ferdinand, a former captain, who in June created a frenzy and a spike in United’s share price when he announced a sale to the Qatari group was “imminent.”That proved to be a false dawn. And it was not the only one. Other headlines in British news media, which treated the takeover in ways more typical of high profile player trades in the transfer market, led to similar lifts and dips in both hopes and the price of United shares.The transaction with Mr. Ratcliffe did not produce the outcome many fans had wanted, the Glazer family’s sale of the team.Oli Scarff/Agence France-Presse — Getty ImagesThe conclusion of the sale process will not produce the outcome many fans had hoped to see: the Glazers’ sale of the team. Mr. Ratcliffe now will control only 25 percent of the club’s voting rights through a mix of the Glazers’ stake and a portion of those owned by other shareholders. As part of the deal, the Glazers will relinquish day-to-day control of the sporting activities of the club but will retain control of United’s commercial activities and still hold the majority of board positions.Mr. Ratcliffe seemed pleased with the deal he had made — “We are here for the long term,” he said of his new management team — but the reaction of fans might not be as universally positive.“I think the problem with it is that it leaves the fan base feeling divided,” Mr. Drasdo said. “It leaves a sense of resentment and negativity that’s not helpful. A clean break would have been better.”Fans will be hoping the new era will lead to a return of United’s winning ways, and a reversal of the botched succession planning that followed the retirement of the legendary coach Alex Ferguson after he led the team to the last of its 19 league championships in 2013. Since then, new coaches have come and gone, and vast sums have been spent on new recruits. But without a discernible strategy, the club now finds itself with a bloated and underperforming roster, and clinging to eighth place in the 20-team Premier League.“It’s better than the status quo,” said Andy Green, a board member of MUST and the head of investments at Rockpool, a private equity firm. “Because they have proved themselves as being absolutely appalling at being football club owners.” More

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      A Look Back at 2023 in Golf: A Year of Drama

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      The PGA Tour is looking at LIV Golf, and the L.P.G.A. and Ladies European Tour are on the cusp of joining together.Golf is a sport where certain years stand out above others, and 2023 may prove to be one of those years. It’s a heady list.In 1860, Willie Park Sr. won the first British Open, which was held at Prestwick Golf Club, marking the debut of the oldest major tournament.In 1913, the amateur Francis Ouimet won the U.S. Open, beating the two best English golfers of the time, and popularizing the sport in the United States.In 1930, Bobby Jones completed the first and only Grand Slam, winning the four majors of his day in one year.Babe Didrikson Zaharias became the first woman to make a cut on the PGA Tour in 1945, competing in the Phoenix Open and Tucson Open. She went on to dominate that decade of golf.In 1950 the L.P.G.A. was formed.In 1968, a group of professional golfers, led by Jack Nicklaus and Arnold Palmer, broke away from the Professional Golf Association of America to create the PGA Tour.Tiger Woods completed the Tiger Slam — winning all four men’s major championships consecutively over two seasons, from 2000-1.This year could prove pivotal for the men’s and women’s game, with both of the top tours looking at mergers.Rory McIlroy with fans at Oak Hill Country Club in May. McIlroy resigned from the PGA Tour board last month.Doug Mills/The New York TimesBrooks Koepka on day one of the LIV Golf Invitational in October. He was among the highest profile players to defect to LIV.Cliff Hawkins/Getty ImagesFor the PGA Tour, June 6 signifies a before and after in professional golf. That morning Jay Monahan, the PGA Tour commissioner, announced a “framework agreement” for the PGA Tour to work with LIV Golf, the Saudi-backed golf league that he had spent much of the previous year disparaging.“I would ask any player that has left or any player that would ever consider leaving: Have you ever had to apologize for being a member of the PGA Tour?” Monahan had said a year earlier.It was one in a series of comments he and officials made connecting LIV, which is funded by Saudi Arabia’s Public Investment Fund (P.I.F.), with the country’s history of human rights abuses.But that day in June, in an about-face, there was Monahan sitting next to the fund’s governor, Yasir al-Rumayyan, calling for cooperation.“There are only a handful of people who weren’t surprised given the past two years,” said Kevin Hopkins, vice president at Excel Sports Management. “Not knowing what this is going to lead to is going to be the next headline.”As shocking as this announcement was for golf fans, it was also a surprise to the PGA Tour’s membership, which was largely caught off guard.Suzann Pettersen, the captain of the European team, led her team in their fight for the Solheim Cup in Spain in September. The competition ended in a draw but, as hosts, the Europeans retained the cup.Bernat Armangue/Associated PressThe year in the women’s game was more positive — exciting major championships, the debut of a promising young star, a hotly contested Solheim Cup that ended in a draw between the two teams — but the women’s tour also has a cloud of uncertainty hanging over it.After the L.P.G.A. and its equivalent across the Atlantic, the Ladies European Tour (L.E.T.), reached an agreement to merge, the L.E.T. vote to approve the merger was abruptly postponed. Here’s a look back at a roller coaster year.Behind the scenesThe PGA Tour-LIV announcement looms large for the sheer suddenness of the tour’s reversal and the way that it angered and alienated some of its top players, including Rory McIlroy, who had been one of Monahan’s staunchest allies. He has since resigned from the PGA Tour board.“My reaction was surprise, as I’m sure a lot of the players were taken back by it, by what happened,” Woods said last month at his Hero World Challenge. “So quickly without any input or any information about it, it was just thrown out there.”The move galvanized top players to push for control on the tour’s board. Woods, who now sits on the board, said players wanted to ensure that, going forward, “we were not going to be left out of the process like we were.”For his part, Monahan has expressed regret with how the announcement was made. “The rollout was a failure on my part,” he said at The New York Times DealBook Summit last month. “I’ve owned it, and I’ve continued to own it.”Jay Monahan, the PGA Tour commissioner, surprised many in June, when he announced a “framework agreement” for the tour to work with LIV Golf.Mike Ehrmann/Getty ImagesOn the other side, LIV Golf was given a boost, if not a lifeline. The league had been rolled out haphazardly. Its first tournaments in 2022 had been marred by problems, such as the lack of a television deal and team uniforms.The P.I.F. put hundreds of millions of dollars behind the new league, but after the initial wave of star defections to LIV — Dustin Johnson, Brooks Koepka and the then-reigning British Open champion, Cameron Smith — attention shifted to poor attendance at events and a lack of a major media partner to broadcast the events.The June 6 announcement gave the fledging league relevance.“We went from being cast unfairly as outsiders in golf to our chairman sitting shoulder to shoulder with the commissioner of the PGA Tour,” said Gary Davidson, LIV Golf’s interim chief operating officer in 2023. “We always knew that LIV could coexist.”With the L.P.G.A. and L.E.T., their merger talks had been going smoothly. The two tours have been operating in a joint venture since 2020, a period when prize money rose on both tours.This year the two boards negotiated terms for a merger, with the L.P.G.A. effectively taking over the L.E.T. Whether it happens depends on a vote by the L.E.T. players.“The vote has been postponed by the L.E.T. board from its original Nov. 21 date as more time was needed to evaluate all relevant information received,” said Mollie Marcoux Samaan, the L.P.G.A. commissioner. “A new date for the vote has not yet been set. The L.P.G.A. board remains enthusiastic about the opportunity to bring our two organizations together.”Jon Rahm won the first major of the year, fending off Brooks Koepka to win the Masters at Augusta National Golf Club in April.Christian Petersen/Getty ImagesIn the spotlightBoth the women’s game and men’s game also provided compelling story lines on the course.The first men’s major, the Masters Tournament, came down to a duel between Jon Rahm, a stalwart of the PGA Tour, and Koepka, a multiple major champion who had left for LIV. Rahm prevailed, but in the next major, the PGA Championship, Koepka pulled away from the field to win his fifth major.LIV saw this as validation. “Competing in the Masters and then winning the PGA Championship was massive for us,” Davidson said. “It proved the competitiveness of LIV, that it could prepare the guys well for majors.”(On Thursday, LIV announced that Rahm would join its tour next year.)The five women’s major championships also provided excitement. Lilia Vu won the first and last of the majors, to rise to the No. 1 ranking and claim the player of the year title. Céline Boutier became the first French player to win her home country’s Amundi Evian Championship. And Allisen Corpuz, a young American in her second year on the tour, won the U.S. Women’s Open.Allisen Corpuz notched her first win on the L.P.G.A. Tour in July, at the U.S. Women’s Open in Pebble Beach, Calif.Ezra Shaw/Getty ImagesThe L.P.G.A. also got a feel-good story with Rose Zhang, who had long been the No. 1-ranked amateur woman in the world. Zhang turned pro in June and won the first event she entered.“It’s been a whirlwind for her, but she’s done what people have expected her to do,” said Hopkins, who runs Excel Sports Management’s L.P.G.A. practice. “The L.P.G.A. is excited to have her as one of the stars.”Team competition was intense on both the men’s and the women’s sides, but in different ways: The Solheim Cup was close and exciting, while the men’s equivalent, the Ryder Cup, was a rout. Team Europe blew out the U.S. team, which succeeded only in preserving its 30-year losing streak in Europe.There is one wrinkle for future European teams, and that’s the partnership the PGA Tour and the DP World Tour have struck. The PGA Tour has effectively made DP World a feeder tour, granting membership to the top 10 players on its annual Race to Dubai rankings. This effectively culls the best players in Europe.With just weeks left in the year, there’s still the possibility of more drama. While all eyes are on whether the PGA Tour-LIV framework agreement gets signed by year end, questions remain whether the L.P.G.A. and L.E.T. merger will go through too. It’s a fitting end to a tumultuous year. More

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      PGA Tour Wanted Greg Norman Ousted as Part of Saudi Deal

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      The American circuit’s efforts were made public in documents that Congress released on Tuesday.The PGA Tour sought the ouster of Greg Norman, the two-time British Open champion who became the commissioner of the insurgent LIV Golf league, as a condition of its alliance with Saudi Arabia’s sovereign wealth fund, according to records that a Senate subcommittee released on Tuesday.The tour and the wealth fund did not ultimately agree to the proposal — crafted as a so-called side letter to a larger framework agreement — and, for now, Norman remains atop LIV. But the deliberations reflect an enmity forged over decades of hostilities between the tour and Norman, one of the most talented players in professional golf history who often chafed at the sport’s economic structure.And they underscore the tensions that could linger if the deal closes.The glimpse into the negotiations between the tour and the wealth fund came as the Senate’s Permanent Subcommittee on Investigations began its first hearing into the arrangement, which calls for the business ventures of the tour, the wealth fund and the DP World Tour to be brought into a new, for-profit company.The plan is facing significant scrutiny in Washington, where some lawmakers have castigated the tour, once willing to condemn Saudi Arabia’s record of human rights abuses, for abruptly growing cozy with an arm of a coercive government. Beyond any congressional misgivings about the wealth fund’s ties to the Saudi government, Justice Department officials are also interested in whether the deal violates federal antitrust laws and whether they should try to block it.Senator Richard Blumenthal, Democrat of Connecticut, said in his opening statement on Tuesday that his subcommittee’s hearing was about “much more than the game of golf.”“It is about how a brutal, repressive regime can buy influence — indeed even take over — a cherished American institution to cleanse its public image,” Blumenthal, the subcommittee’s chairman, added, citing the kingdom’s record of killing journalists, abusing dissidents and having “supported other terrorist activities, including the 9/11 attack on our nation.”“It is also about hypocrisy, how vast sums of money can induce individuals and institutions to betray their own values and supporters, or perhaps reveal a lack of values from the beginning,” he continued. “It’s about other sports and institutions that could fall prey, if their leaders let it be all about the money.”The proceeding, held in a crowded Capitol Hill room that previously hosted Supreme Court confirmation hearings and meetings of the 9/11 Commission, included two senior PGA Tour leaders: the chief operating officer, Ron Price, and a board member who was intimately involved in the negotiations that led to the tentative deal that was announced on June 6.In an opening statement, Price argued that the tour, faced with the threat of competing with one of the world’s mightiest sovereign wealth funds, had little choice but to seek some measure of coexistence after months of acrimony in court and in jockeying for the allegiances of the world’s best players.“It was very clear to us — and to all who love the PGA Tour and the game of golf as a whole — that the dispute was undermining growth of our sport and was threatening the very survival of the PGA Tour, and it was unsustainable,” Price said. “While we had significant wins in litigation, our players, our fans, our partners, our employees and the charities we support would lose.”Tour leaders have acknowledged that with negotiations for a final agreement still unfolding, board approval is no certainty. Over the weekend, one member of the board, the former AT&T chief executive Randall Stephenson, resigned. In a letter about his exit, Stephenson said “the construct currently being negotiated by management is not one that I can objectively evaluate or in good conscience support.”Tour executives have been eager to show how the agreement leaves them positioned to run professional golf’s day-to-day operations. The tour’s commissioner, Jay Monahan, has been tabbed as the chief executive of the new company, expected to be called PGA Tour Enterprises, and the tour is expected to fill a majority of the company’s board seats.They have been far less keen to discuss how Yasir al-Rumayyan, the wealth fund’s governor, will serve as the chairman of PGA Tour Enterprises and how the framework agreement envisions sweeping investment rights for a Riyadh-based fund whose power and value have swelled in recent years.Neither al-Rumayyan nor Norman agreed to testify at Tuesday’s hearing, citing scheduling conflicts. But documents released by the subcommittee suggest that both will be factors in an inquiry that could last months.The effort to remove Norman was underway by May 24, when the PGA Tour board’s chairman, Edward D. Herlihy, sent a proposed side letter to Michael Klein, a banker working with the wealth fund. The proposal called for Norman, as well as a British outfit central to developing LIV, to “cease” working on LIV within a month of “the management transition to the PGA Tour.”Although Norman’s long-term fate has been uncertain — he was not a part of the negotiations that led to the preliminary deal, stoking questions about his relevance — it was not until Tuesday that it became clear that his future had been a subject of the talks.LIV did not comment on Tuesday, but three people with knowledge of the negotiations, who requested anonymity to discuss private talks, said the wealth fund had rejected the tour’s proposal.The documents that the Senate released also detail the deliberations over when and how to announce the deal; Klein was among the figures who said the tour and the wealth fund should not wait for a final agreement to disclose their newfound peace.And the records show how a British businessman with ties to the wealth fund and its advisers reached out to James J. Dunne III, now a tour board member and one of Tuesday’s witnesses, in December. In an email, the businessman, Roger Devlin, suggested that there could be a pathway to an armistice between the tour and the wealth fund.Dunne, at least at first, declined to engage in a substantive way.Devlin re-emerged in April, warning Dunne that there was “a window of opportunity to unify the game over the next couple of months” before, he thought, “the Saudis will doubledown on their investment and golf will be split asunder in perpetuity.”Although committee investigators told senators in a briefing memorandum that they did not know for certain how Devlin’s April message influenced Dunne, the tour board member contacted al-Rumayyan within days.Dunne, al-Rumayyan and a handful of others met in Britain soon after, starting negotiations that included a number of ideas that did not make it into the five-page text of the framework agreement. Those concepts, outlined in a presentation titled “The Best of Both Worlds,” included Tiger Woods and Rory McIlroy, who had pledged fealty to the tour, owning LIV teams and a “large-scale superstar” team golf event that would feature the world’s top men’s and women’s players.Although the initial deal between the tour and the wealth fund did not include some of those proposals, the final agreement is still being hammered out, a process that could take months.At least as of April, according to documents the Senate released, there was even talk of a deal including memberships for al-Rumayyan at Augusta National Golf Club and the Royal and Ancient Golf Club of St. Andrews — two of the most prestigious golf clubs in the world, but ones that are not controlled by the PGA Tour. More

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      LIV Golf Resists Senate Request for Greg Norman’s Testimony on Saudi Deal

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      Less than two weeks before a planned hearing about a transaction that could reshape golf, lawmakers are struggling to assemble a witness list.The Capitol Hill meeting room has been booked, the senators’ calendars cleared. But less than two weeks before a Senate subcommittee wants to hold a hearing about the PGA Tour’s planned venture with Saudi Arabia’s sovereign wealth fund, the panel’s ambitions for high-profile witnesses are encountering significant resistance.There is almost no prospect that the wealth fund’s governor, Yasir al-Rumayyan, will voluntarily go before Congress, on July 11 or ever. The PGA Tour’s commissioner, Jay Monahan, is on medical leave. And LIV Golf, a Saudi-financed league, is balking at sending Greg Norman, who won two British Opens in the decades before he became the circuit’s commissioner and lightning rod, to speak to the Senate’s Permanent Subcommittee on Investigations.The dispute over witnesses, only weeks into the panel’s examination of the deal, suggests that the inquiry could be turbulent. Lawmakers are especially frustrated by LIV’s offer to send Gary Davidson, its acting chief operating officer, to the hearing instead of Norman.“We have requested testimony from Greg Norman, and unless there is a reasonable explanation for his absence — which we have not yet been provided — Greg Norman is who we expect to appear,” Maria McElwain, the communications director for Senator Richard Blumenthal, the Connecticut Democrat who chairs the subcommittee, said in a statement.LIV declined to comment on Friday, but a person familiar with the circuit’s thinking, who requested anonymity to discuss private negotiations with Congress, said the league believed that Davidson was more steeped in its day-to-day operations and the potential ramifications of the deal that has rocked golf since it was announced on June 6. Norman and Davidson were not involved in the secret talks that led to the deal.Under the structure envisioned in a five-page framework agreement signed behind closed doors on May 30, the business operations of the PGA Tour, LIV and the European Tour, known as the DP World Tour — such as television rights and sponsorships — would be brought into a new for-profit company. The plan calls for the PGA Tour to control a majority of the board’s seats, for Monahan to be the company’s chief executive, and for the tour to maintain authority over many professional golf tournaments.But Saudi Arabia’s wealth fund would have extensive investment rights, and al-Rumayyan is positioned to become the company’s chairman, assuring the Saudis of significant sway over men’s professional golf if the deal closes.The planned venture has drawn weeks of scorn and skepticism from Washington, where lawmakers have fumed over Saudi Arabia’s human rights record, much as the tour did before it looked to go into business with the wealth fund. Some lawmakers have threatened to strip the tour of its tax-exempt status, and the Justice Department’s antitrust regulators could spend months scrutinizing the deal before deciding whether they will try to block it.And, hewing to the congressional pastime of publicly haranguing sports executives over issues such as steroids and the rights of college athletes, the Senate quickly scheduled a hearing to examine the deal, even though the most substantial details, like the valuations of assets, may not be resolved for months.In letters last week, though, Blumenthal and Ron Johnson, a senator from Wisconsin who is the senior Republican on the subcommittee, invited Norman, Monahan and al-Rumayyan to appear and be prepared to “discuss the circumstances and terms” of the agreement, as well as “the anticipated role” of the wealth fund in professional golf in the United States.LIV Golf chief operating officer Gary Davidson, right, talks with the Australian golfer Wade Ormsby at a LIV event earlier this year.Scott Taetsch/LIV Golf/LIVGO, via Associated PressThe senators, who have not subpoenaed any executives, had hoped to firm up the witness list by the middle of this week, but on Friday their panel was still bargaining with the tour, the wealth fund and LIV.The hearing, if it happens, will be among the most significant opportunities to date for golf executives to ease concerns about the planned transaction. But the proceeding, like any appearance before Congress, carries risks. A single misstep could intensify the public firestorm or, perhaps more troublingly for the deal’s supporters, encourage government officials to take an even more exacting look at the pact. (Antitrust experts, for instance, have predicted that Monahan’s assertion on June 6 that the deal will “take the competitor off of the board” will intensify the Justice Department’s scrutiny.)Norman, in particular, has a history of drawing criticism. Last year, for instance, he played down Saudi responsibility for the murder of the Washington Post columnist Jamal Khashoggi, saying, “Look, we’ve all made mistakes.” In recent months, he has made relatively few public comments, and he and his representatives have declined interview requests from The New York Times.But when Blumenthal and Johnson wrote to him on June 21, they said the subcommittee “respectfully requests that you appear in-person to testify.” LIV executives said Norman would be traveling abroad at the time, and they privately objected to the commissioner being subjected to congressional inquiry without his PGA Tour counterpart enduring the same scrutiny, which seems likely given Monahan’s medical leave.Monahan’s indefinite absence has complicated the tour’s representation at the hearing. The two executives named to lead the tour on an interim basis, Tyler Dennis and Ron Price, were not involved in the deal talks.Al-Rumayyan, however, was. But his appearance on Capitol Hill was never considered probable. One of Saudi Arabia’s most influential figures, he rarely gives interviews outside of tightly controlled settings, and lawyers representing him and the Saudi government waged an aggressive fight to keep him from being deposed in golf-related litigation in the United States. (The litigation was dropped as a part of the tentative deal — one of the few binding components of the framework agreement — and al-Rumayyan never gave sworn testimony.)The wealth fund declined to comment on Friday. The tour, in a statement, said it was “cooperating with the subcommittee’s requests for information and having productive conversations with them about who will represent the PGA Tour on July 11th.”It added, “We look forward to answering their questions about the framework agreement that keeps the PGA Tour as the leader of professional golf’s future and benefits our players, our fans and our sport.”The wealth fund and the tour are deploying armies of lobbyists, lawyers and political fixers to try to smooth the deal’s path. Before going on leave to recuperate from a “medical situation” that the tour has declined to describe, Monahan wrote to lawmakers to defend the agreement. He also complained that Congress had not given the tour enough support to withstand a Saudi “attempt to take over the game of golf in the United States,” as he put it.“We were largely left on our own to fend off the attacks, ostensibly due to the United States’ complex geopolitical alliance with the Kingdom of Saudi Arabia,” Monahan wrote.It is not clear whether the Senate panel will escalate its efforts to secure testimony from Norman, or any of the other witnesses they requested, especially before the July 11 hearing. Most lawmakers are away from Washington for the Senate’s Independence Day break, and few are expected to return to Capitol Hill until the week of the hearing.The hearing’s current timing, though, could be fortuitous for golf leaders. Public attention will turn the following week to the British Open, which will be played at Royal Liverpool. Cameron Smith, who joined LIV not long after his victory last July on the Old Course at St. Andrews, will try to defend his title at golf’s last major tournament of the year. More

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      How the PGA Tour and Liv Golf Merger Could Collapse

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      The tentative agreement has been the talk of golf, but there is no guarantee the pact that aims to bring the tour and LIV Golf under one umbrella will overcome every threat.Golf’s big deal — a planned partnership between the PGA Tour and Saudi Arabia’s sovereign wealth fund — is not how big deals are ordinarily done.There were almost no outside bankers or lawyers involved in negotiations that led to a five-page framework agreement, and only so much input from the PGA Tour board. The initial pact had few binding clauses and did not assign values to assets. The plan that would, as the PGA Tour commissioner, Jay Monahan, put it, “take the competitor off of the board” came as the tour faced a Justice Department investigation over antitrust matters.“In some ways, this looks a little more like a settlement to me than an actual M&A deal,” said Suni Sreepada, a partner in the mergers & acquisitions group at Ropes & Gray who said the lack of definitive arrangements complicated the path to closing.“The fact that they were willing to publicly announce it does mean that the parties are pretty committed to doing something,” Sreepada said. “But I guess that leaves us with a question of who holds the leverage at this point? And how does this end up getting fleshed out?”If the agreement closes, it stands to reshape golf’s economic structure profoundly, bringing the business ventures of the PGA Tour, LIV Golf and the DP World Tour, formerly the European Tour, into a new company. The wealth fund is in line to have significant influence over investments in the company, which Monahan is poised to lead as chief executive.Despite the Saudi sway over the new company’s coffers, as well as the plan for the wealth fund’s governor, Yasir al-Rumayyan, to serve as the entity’s chairman, PGA Tour officials have insisted that the tour retains control over the competitions themselves. They also note that the tour, which had previously condemned wealth fund money as tainted and immoral, will control a majority of board seats.“We are confident that once all stakeholders learn more about how the PGA Tour will lead this new venture, they will understand how it benefits our players, fans and sport while protecting the American institution of golf,” the tour said this month.Those assurances have done little to curb outrage over the pact, which could still fall apart.Here are some of the obstacles the tour, whose board is meeting near Detroit on Tuesday, and the wealth fund will have to overcome during a process that could take months. If the deal is not done by Dec. 31, it could potentially collapse, allowing both sides to decide whether they want to “revert to operating their respective businesses.”The PGA Tour’s board could balk.The tour has an 11-member board that includes five players. The board’s chairman, Edward D. Herlihy, and a member, James J. Dunne III, were involved in the talks with the wealth fund, but others had little knowledge of the deal until the day it became public.The board must sign off on the agreement once the outstanding details are negotiated. Although Herlihy and Dunne are expected to vote for the pact they helped create, most other board members have been publicly silent or noncommittal.“I told myself I’m not going to be for it or against it until I know everything, and I still don’t know everything,” Webb Simpson, a board member who won the 2012 U.S. Open, said in a recent interview. And at a news conference on June 13, Patrick Cantlay, another player with a board seat, said “it seems like it’s still too early to have enough information to have a good handle on the situation.”Beyond the anticipated backing from Herlihy and Dunne, Rory McIlroy, who sits on the board, has indicated reluctant support for the deal, saying: “If you’re thinking about one of the biggest sovereign wealth funds in the world, would you rather have them as a partner or an enemy?”Other directors have not responded to messages or could not be reached for comment.With many of the agreement’s details still being negotiated, the board did not vote on the deal on Tuesday.The Justice Department could try to block the deal.The Justice Department was looking at professional golf before the deal was announced, with antitrust investigators examining the tour’s closeness with other leading golf organizations and its efforts to deter players from joining LIV.The proposed partnership did not extinguish the department’s interest. In fact, it appears to have strengthened it.Although the tour and the wealth fund have refused to characterize the transaction as a merger, antitrust experts say semantics may not matter. Even if the deal is structured as more of a partnership than an acquisition, the Justice Department could seek to block it, as it successfully did with JetBlue’s alliance with American Airlines.Monahan stirred more doubts in Washington with his public observation that a leading rival would no longer be a threat. Antitrust lawyers said the department could interpret his remark as evidence that the elimination of competition is the aim of the deal, not, say, improving the sport.But Monahan also said the agreement would help create “a productive position for the game at large.” The tour is expected to focus on this in the coming months, arguing that by combining resources and repairing the rift in professional golf, the proposed venture would offer fans the best of all worlds, including more competitions between the finest players on the planet.A LIV Golf event at the Trump National Golf Club in Washington, D.C., this year.Chris Trotman/LIV Golf, via Associated PressThe end of the tension could help persuade regulators to approve the deal, reasoning that it is good for consumers.“If I were the lifetime czar of antitrust in the United States, I would ban the deal and tell them go back and compete,” said Stephen F. Ross, who teaches sports law at Penn State and worked for the Justice Department and the Federal Trade Commission.But, he said, “the real world is that neither private litigation nor antitrust enforcers have ever been particularly good at policing competition between sporting entities to make sure that consumers’ preferences are respected.”The department could also scrutinize how the arrangement will affect professional golfers, given the Biden administration’s focus on workers. In its successful effort to block Penguin Random House’s takeover bid for Simon & Schuster, the department’s antitrust regulators cited the potential effects on author compensation.Even though professional golfers, who often earn millions of dollars in prize and sponsorship money, may appear to be a less sympathetic group of workers than others affected by corporate transactions, the department could be eager to build case law related to the labor consequences of deals.Congress wants the Committee on Foreign Investment in the United States to study the pact.The deal has been loudly criticized on Capitol Hill, and a Senate subcommittee has scheduled a July hearing. But a Senate hearing cannot stop the deal, and so some lawmakers have asked a Treasury Department-led panel to intervene.The Committee on Foreign Investment in the United States, or CFIUS, is an interagency panel that has broad latitude to scrutinize any transaction that could result in a foreign entity controlling an American business and threatening national interests. Control is interpreted broadly, and can exist even in an investment for a minority stake.A transaction involving golf tours would not immediately seem to trigger a CFIUS review; it does not involve critical technologies and most likely does not involve much sensitive personal data about U.S. citizens. Janet Yellen, the Treasury secretary, said earlier this month that it was “not immediately obvious” the deal involved national security concerns.The demands for a review have not detailed specific concerns besides a generalized distaste for a partnership between an American sports titan and an arm of a government “known for chilling dissent, jailing dissidents and enacting draconian punishments,” as Senator Sherrod Brown, Democrat of Ohio, and Representative Maxine Waters, Democrat of California, put it.But one possible reason to scrutinize the deal involves real estate since CFIUS can review agreements involving property close to sensitive military sites. One of the PGA Tour’s biggest assets that could be controlled by the new for-profit entity is the Tournament Players Club collection of more than 30 golf courses across the United States that are owned, licensed or operated by the PGA Tour. More

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      PGA Tour Board Meets To Discuss Merger With Saudi-Backed LIV Golf

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      The 11-member board did not vote on the surprise pact, whose most significant details are still being negotiated.The PGA Tour’s board, with its members gathered in the same room for the first time since a fraction of them negotiated a deal with Saudi Arabia’s sovereign wealth fund to reshape golf, signaled Tuesday that it intended to move ahead with the agreement and past an outcry that has stretched from clubhouse locker rooms to Capitol Hill.But it also made plain that closing the deal was no certainty.The board, as expected, did not vote on a deal stocked with tentative terms that call for a web of golf businesses — including the tour, the Saudi-backed LIV Golf circuit and the European Tour, now known as the DP World Tour — to be housed in a new company. The entity is expected to be flush with Saudi cash but, for now, under the day-to-day control of PGA Tour leaders. But executives hoped that the regular meeting of the board, which is expected to weigh the pact formally only once final terms are negotiated, would help stabilize the tour’s course during a turbulent run of internal division and global scrutiny.That period, executives and board members know, could last for months.Tour executives, the board said in a carefully worded statement Tuesday night, have “begun a new phase of negotiations to determine if the tour can reach a definitive agreement that is in the best of interests of our players, fans, sponsors, partners, and the game overall.”The board, wary of further alienating the players who make up the tour’s membership, some of whom were infuriated after being blindsided by news of the pact, said it was “committed to the safeguards in the framework agreement that ensure the PGA Tour would lead and maintain control of this potential new commercial entity.”The board’s meeting came three weeks after the surprise announcement of the deal, and one day after the tour gave a Senate subcommittee a copy of the five-page framework agreement. The tentative accord, signed in the early-morning hours of May 30 at a Four Seasons hotel in San Francisco, capped seven weeks of secret negotiations, but it was mostly notable for how few binding commitments it included — and how many consequential details remained to be sorted through.Although the tour and the wealth fund are expected to contribute their golf ventures, like LIV, into the new company, the deal’s architects signed the framework agreement so quickly that no valuations were included or, apparently, even completed in advance. The agreement does not quantify the scale of the wealth fund’s expected investment in the new company, though it offers an outline for its leadership structure and protects the Saudi fund’s investment rights.Its few binding clauses include a nondisparagement pledge covering the tour and the wealth fund (but not the players) and a truce that keeps the rival circuits from recruiting golfers from one another. If a final agreement is not in place by the end of the year, barring a mutual extension, the tour and the wealth fund can “revert” to their businesses without any financial penalty, like a breakup fee.Board approval, if it comes, does not guarantee that the deal will last. The Justice Department’s antitrust regulators are among the government officials examining the accord, and they could ultimately try to block it. The pact is also poised to draw scrutiny next month on Capitol Hill, where a Senate subcommittee has scheduled a hearing for July 11.But Tuesday’s meeting was seen as pivotal to the way forward for the tour and an 11-member board that includes five players and luminaries in business, law and finance. Only two members of the board, Edward D. Herlihy and James J. Dunne III, were involved in the negotiations that led to the deal, and it appears many board members did not know they were underway.The board meeting, held at a Detroit-area hotel, began in the early afternoon and stretched into the evening. A person familiar with the meeting, who spoke on the condition of anonymity to describe a private gathering, said it had not focused entirely on the deal; rather, the person said, the board also spent significant time on more technical matters of the sport, such as competition cuts and eligibility.The majority of the meeting focused on the framework agreement, though, with board members receiving a briefing from the tour’s bankers about how they will try to assign values to the circuit’s varied assets. Jay Monahan, the PGA Tour commissioner, was absent from the meeting in Dearborn; on June 13, the tour announced that he was going on leave as he recuperated from an unspecified “medical situation.”Board members did not comment as they left the meeting, allowing the statement to stand on its own. Only one player who sits on the board, Rory McIlroy, has publicly suggested any measure of support for the deal. In recent weeks, other players have said they wanted to learn more about the accord and what it would mean for the tour.But board members have been told in recent months that the tour could not afford to maintain its duel with LIV, the league founded with billions of dollars from the Saudi wealth fund that enticed some of the game’s biggest stars with guaranteed contracts and enormous prize money. The wealth fund was also facing some pressure as it confronted setbacks in a court battle against the tour, and as LIV struggled to attract audiences and attention in the United States for reasons beyond its financial backer.If the deal collapses, though, both sides have already secured a mutual victory: the dismissal of litigation in California after the tour, the wealth fund and LIV agreed to drop their clashing cases. The dismissals were made with prejudice, meaning that they cannot be refiled, even if the rest of the pact disintegrates.For as guarded as the tour’s statement was on Tuesday night, the dismissal of the litigation was mentioned in its very first sentence. More

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      Washington Spirit’s Michele Kang Wants to Take Women’s Soccer Clubs Global

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      “Transforming Spaces” is a series about women driving change in sometimes unexpected places.Y. Michele Kang did not expect to be here.As the founder and chief executive of Cognosante, a health care technology company, she had made a name for herself as a “reasonably successful businesswoman,” she said.At this point in her career, she explained, she thought she might start spending more time on her philanthropic work. Instead, she has become an influential figure in the world of professional women’s soccer.“I don’t think I’ve been as passionate about anything as I am now about women’s soccer,” Ms. Kang said.In March 2022, she purchased the Washington Spirit, becoming the first woman of color to own a controlling stake in a National Women’s Soccer League team. The sale came after a long and contentious battle in which players and fans called for Steve Baldwin, the chief executive at the time, to sell the team to Ms. Kang in the wake of allegations of abuse brought against the team’s former coach.Just a year later, she is now set to become the first woman to own and lead a multiteam soccer organization, which will encompass both the Spirit and the French club Olympique Lyonnais. The all-stock deal, which is expected to close in late June, will create a new independent entity under Ms. Kang as majority owner. She is already talking of adding more teams from around the world.As Ms. Kang’s profile has risen, questions remain about how much she can do in a league and a sport where abuse has been rampant and leaders have failed to protect players. Trust in longtime N.W.S.L. coaches and staff members can be on shaky ground. Who knew of abuse and turned the other way? How do you build a new culture from the ground up?Her response lies in equal parts investment and trust. Players and staff had endured a “horrific situation,” she said of abuse allegations, including accusations that the coach of the team she owned had fostered a toxic workplace culture for female employees.“I don’t want to overplay that I’m a woman, or a person of color, therefore I’m the only one who can understand our players,” she said, speaking of members of the Washington Spirit, “but there is a little bit of a sense of trust and comfort and familiarity that I am very glad to provide so that they feel comfortable coming up to me and talking to me about any issues.” She wishes she could say any of this — her purchase of a N.W.S.L. team, her creation of a multiteam organization, her hopes to help transform the culture around women’s soccer — were all part of a grand vision. But that is not the case.A few years ago, she didn’t know much about the sport. So little, in fact, that friends accused her of not knowing Lionel Messi, one of the world’s most famous players.Her retort? “Well, I did know who Pelé was.”Ms. Kang in 2021, as the Spirit’s co-owner, celebrating after the team won the National Women’s Soccer League championship on Nov. 20 in Louisville, Ky.Tim Nwachukwu/Getty ImagesMs. Kang grew up in Seoul in a home where education was prized. Her mother demanded excellence and her father always told her “there is nothing I couldn’t do that the boy next door could,” a sentiment that was more of a rarity growing up in South Korea in the 1960s.As she began to study business and economics in Seoul, she realized her dreams extended beyond her home country. The center of the business world was in America, she said, so with the eventual blessing of her parents, that’s where she decided to go. It was quite a bold move for a young single Korean woman at the time. She earned a degree in economics from the University of Chicago and went on to earn a master’s degree from the Yale School of Management.And so began not a five-year plan but a 30-year plan. The goal was to build enough experience to become the chief executive of a large company. Her work kept her in motion. Ms. Kang estimates she moved between 20 and 30 times.In the midst of the recession of 2008, around the time she expected to join a major company, she started her own. Like many entrepreneurial stories, what would become Cognosante, a multimillion-dollar company, began in a room above her garage in the Washington, D.C., area.“I had a reasonably successful company,” she said of Cognosante, “I thought that was my business career.”That was until 2019, when Ms. Kang, whose business accomplishments were well-known, was invited to join the Spirit’s ownership group after the U.S. women’s national team won the World Cup that year. Ms. Kang didn’t know much about soccer, and she still had her own company to run, she recalled. But she was curious enough to spend six months getting to know the owners and players. She thought about the mentorship she was already doing. Why not this too?She joined the ownership group in late 2020, walking into a league and a team that would face a public reckoning and an extraordinary upheaval.In the spring of 2021, she was made aware of ongoing accusations of verbal and emotional abuse at the hands of Richie Burke, the Spirit’s former head coach. Ms. Kang said multiple people came to her with their concerns. Mr. Burke was fired from the team in September 2021. The accusations were recounted in a series of published reports, and many employees had quit the team amid reports of a toxic workplace culture.Ms. Kang was working to take majority control of the team as players and fans called for Mr. Baldwin, then the chief executive, to sell the Spirit. The transfer of power did not come easily. Spirit players demanded that Ms. Kang be the new owner, but it would be months before Mr. Baldwin stepped down and Ms. Kang was able to acquire the necessary shares.“Let us be clear,” a letter to Mr. Baldwin from the team’s players stated. “The person we trust is Michele. She continuously puts players’ needs and interests first. She listens. She believes that this can be a profitable business and you have always said you intended to hand the team over to female ownership. That moment is now.”The Spirit deal closed on March 30, 2022.Ms. Kang hugs Spirit goalkeeper Aubrey Kingsbury after a May match against San Diego Wave F.C. at Audi Field.Geoff Burke/USA Today Sports, via ReutersMs. Kang’s influence grew quickly in the midst of a wave of new investment, and interest in, the women’s game.In the summer of 2020, an eclectic group of owners including the actors Natalie Portman and Eva Longoria, the soccer legend Mia Hamm and the tennis great Serena Williams announced the creation of a team in Los Angeles, Angel City F.C., which made its debut in 2022, along with another expansion club, the San Diego Wave. An additional club, Racing Louisville F.C., joined the league in 2021, and the Utah Royals were sold and their assets moved to a new franchise in Kansas City, the Current. The Utah Royals will be added back to the N.W.S.L. in the 2024 season, along with another expansion club, Bay F.C. The league, now in its 11th season, is already looking at further expansion.None of this is a surprise to Ms. Kang, who seems dumbfounded if not frustrated by how anyone could undervalue a women’s professional soccer league, or why there has been a lag in investments.“I give full credit to people who carried the teams,” she continued, speaking of past N.W.S.L. owners. “But it was being viewed as a charity or a nonprofit, and business disciplines were not applied from where I stand.”That attitude signals legitimacy in a unique way, said Natalie L. Smith, an associate professor of sports management at East Tennessee State University who studies women’s soccer.If Angel City signaled legitimacy through celebrity, she said, Ms. Kang signals worth through business investment, which sends a message to other potential investors as well.These moves come in the midst of two transitions in the world of soccer, said Stefan Szymanski, an economist at the University of Michigan and the co-author of “Soccernomics.” “One obviously is the rise of women’s soccer, which is long overdue and which seems to be going places quite rapidly in the moment. The second is the transformation of soccer ownership and the management of clubs generally worldwide.”“We don’t feel that women are small men,” said Ms. Kang, at Audi Field. She added that female athletes should be trained with a specific understanding of their physiology and biology.Lexey Swall for The New York TimesMs. Kang, who turns 64 this month, now speaks like a student of the game. She is eager to listen and to learn, and to navigate the complexities of team ownership, ones that in her current purview are not so complex at all. It’s a trait that has made her popular and trusted among the players and staff on her team.“We don’t feel that women are small men,” she said, echoing a sentiment reflected in the lack of studies done specifically on women’s athletics. “We are not going to borrow a manual from the men’s soccer team. We want to understand women’s physiology and biology and train our athletes according to that.”To that effect, Ms. Kang has hired experts to develop programs for how training may, or should, differ during menstrual cycles. It’s a worthwhile place to put funding, she said, and the experience has helped her realize what her footprint could be in the greater soccer world.“There’s no reason I should only do that for the Spirit,” she said, adding: “And frankly, to do that for one team is a real significant investment.”It’s part of what pushed her to think more globally. Ms. Kang looked to Lyon, a dominant European team that has historically recruited top American players including Aly Wagner, Hope Solo, Megan Rapinoe and Alex Morgan. She spoke excitedly of scouting players internationally, of designing training centers and bigger stadiums, of next steps for expansion.“There is always this push-pull of the greater good when it comes to the women’s football community, which is something that benefits these clubs,” said Ms. Smith, the sports management professor, of Ms. Kang’s expansion. “She does want the game to grow, but she also wants her teams to win.”It will surely not be a straightforward road. There are questions around what could be conflicts of interest in an already dubious labor market. But her biggest test may be with fans outside of the United States.“Americans are little bit docile when it comes to sports and who runs them,” said Mr. Szymanski, the co-author of “Soccernomics.” He added, “In Europe, people just don’t see it like that. They say, ‘This is our sport, not your sport. You may temporarily be here and we’ll give you your due if you put money in, but this is not all about you. This is about the sport.’”Ms. Kang remains undeterred.“It’s not rocket science,” she said with a smile. More

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      For PGA Tour Players, Betrayal and Confusion in Saudi Deal’s Wake

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      Members of America’s most famous golf tour thought they had a voice. Then came a surprise pact that could reshape the sport for years to come.The U.S. Open winner Gary Woodland had lately sensed something different in professional golf.Players were empowered and emboldened. Executives were listening. The PGA Tour was changing. With the circuit’s dominance challenged by LIV Golf, an upstart built with billions of dollars from Saudi Arabia’s sovereign wealth fund, the tour felt closer to a cooperative than a dispassionate titan of professional sports.Then came the tour’s surprise announcement on June 6 that, after it had lobbied players to forsake the Saudi money it had associated with human rights abuses, the PGA Tour and the wealth fund would join forces. None of the five players who sit on the tour’s board learned of the deal more than a few hours before it became public.“It was turning toward players being heard over the last year,” Woodland, who became a professional golfer in 2007, said at the Los Angeles Country Club, where the U.S. Open will conclude on Sunday. June 6, he said, showed that the voices of tour players had suddenly been “thrown out the door a little bit.”Woodland is not an outlier. In interviews and during news conferences at the Open, top players described a shaken faith in a PGA Tour they believed had recently offered them more meaningful agency and greater influence. The tour’s ability to ease the restive atmosphere could influence whether the deal, which is facing significant skepticism inside the tour and in Washington, advances in the coming months.Compared to other prominent professional sports leagues in the United States, the PGA Tour, a tax-exempt nonprofit, has an unusual structure.Unlike in, say, the N.B.A. or the N.F.L., there are no team owners, and there is no labor union. Instead, players are independent contractors who earn eligibility for PGA Tour membership. Tour members do not generally have financial guarantees — they may, however, earn money through assorted sponsorships — but receive tour paychecks tied to their on-course performances. (When Viktor Hovland won the Memorial Tournament this month, he earned $3.6 million of the event’s $20 million prize fund. Golfers who did not play well enough to secure places in the final two rounds collected nothing.)In return for access to tour events and purses, players allow the circuit to negotiate television rights deals on their behalf, among other conditions. Even without a labor union, players theoretically have a say in tour operations: The 11-member board includes five seats for players, and there is a 16-player council that “advises and consults” with board members and the tour’s commissioner, Jay Monahan.But when tour leaders negotiated a framework agreement to reshape the sport in the most consequential ways since the modern tour’s founding in the 1960s, players were not in the room. Rory McIlroy, the world’s third-ranked golfer and a member of the tour’s board, learned of the deal a week after it was signed behind closed doors at a Four Seasons hotel in San Francisco.Deepening the turmoil, the tentative deal makes little about the future clear, mostly because lawyers and executives are still haggling over the fine print that stands to determine much about how the sport will be organized, funded and operated.“It’s just not easy as a player that’s been involved, like many others, to wake up one day and see this bombshell,” Jon Rahm said.Marcio J. Sanchez/Associated Press“I think the general feeling is that a lot of people feel a bit of betrayal from management,” said Jon Rahm, the winner of this year’s Masters Tournament.“It’s just not easy as a player that’s been involved, like many others, to wake up one day and see this bombshell,” he added. “That’s why we’re all in a bit of a state of limbo because we don’t know what’s going on and how much is finalized and how much they can talk about, either.”The sense of duplicity, some players suggested, might not be so severe had they not grown confident in the notion that they were increasingly central to developing the tour’s path for the years ahead.As Tiger Woods receded from golf’s spotlight, Woodland observed, players found their sport searching for figures to help set its tone and direction.“When I first started, you just went out and played and who knows what was going on,” said Woodland, who remains close to Woods. “It was pretty much everyone jumped on Tiger’s coattails and we just went.” More recently, Woodland said, “guys are starting to get a little more of their own voice, and you’re starting to see different opinions.”Faced with the rise of LIV Golf, players had helped devise changes to the tour’s format and schedule. During a private meeting in Delaware last summer they tried to hash out adjustments that could help curb an exodus to LIV. Afterward, Monahan declared that the Delaware meeting “represents a remarkable moment for the PGA Tour and showcases the essence of what being a membership organization is all about.”By the middle of last month, though, Monahan was in Venice for secret talks with Yasir al-Rumayyan, the governor of the Saudi wealth fund. Two board members, neither of them players, were on the trip to Italy. The men later gathered in San Francisco over Memorial Day to finish up the framework deal. Afterward, the circle of people who knew about the planned partnership expanded, but did not include any players until June 6, when tour and Saudi officials announced the pact. Some players learned about it on Twitter.The mood inside the tour only worsened as it became apparent that the deal had been constructed in extraordinary secrecy, with players’ representatives on the board shut out of the talks.Joel Dahmen said he recognized that voices of midlevel players like him would receive only so much priority in the tour’s strategic deliberationsEtienne Laurent/EPA, via Shutterstock“We were given the impression that we were being heard,” said Joel Dahmen, a professional player since 2010 whose public profile soared this year when he appeared in the Netflix documentary series “Full Swing.”Dahmen, a self-described “midlevel” guy, said he recognized that voices like his would receive only so much priority in the tour’s strategic deliberations. But many golfers were flabbergasted that even its greatest headliners were kept away from the negotiations, even as some of their colleagues said they understood that it was impractical to expect tour officials to confer with the entire membership in advance.“If you have to consult every player, then probably nothing’s ever going to happen, and that’s the balance for any organization,” said Adam Scott, the 2013 Masters winner and former world No. 1 player who chairs the tour’s Player Advisory Council. “It’s like the golf club at home: They’ve got the members’ committee, and a few on that committee get to influence decisions.”“It’s a player-centric tour,” Scott added, “but it depends where you’re sitting and how you look at things.”PGA Tour officials have rushed to quell the outrage, mindful that frustrations with the organization helped prepare the ground for LIV to entice players away from what is America’s flagship men’s golf circuit. Senior executives have been at the U.S. Open, and Monahan, who began a leave of absence this past week after what the tour described only as “a medical situation,” held a contentious meeting with players hours after the deal’s announcement.Players with some of the closest ties to Monahan and other executives said they had received a barrage of feedback unlike any they recalled. Webb Simpson, a board member who won the 2012 U.S. Open, said, perhaps with a dose of hyperbole, that he had probably heard more from players since June 6 than he had in his 15 years as a tour golfer.“We want to have unity, but we also want to trust our leaders,” said Simpson, who added that he had been calling players to hear out their misgivings and aggravations. “I think as a whole they are struggling with these decisions.”“It’s a player-centric tour,” Adam Scott said, “but it depends where you’re sitting and how you look at things.”Richard Heathcote/Getty ImagesAlthough McIlroy has signaled his support for the deal, other players with board seats have been publicly noncommittal.“I told myself I’m not going to be for it or against it until I know everything, and I still don’t know everything,” Simpson said.He sounded much like Patrick Cantlay, another board member, who said that “it seems like it’s still too early to have enough information to have a good handle on the situation.”The board is scheduled to meet later this month, but it is not clear whether the pact will be ready for a vote by then. At the very least, board members are expecting a briefing that might allow them to answer more detailed questions about the tour’s future.All players can do for now, many said, is to try to imagine what the tour might look like and where they might fit into a changed ecosystem.“Where I think I am — and a lot of other players are — is we’re going to show up at the biggest and best events that we have tee times at, the ones that pay the most money, and we’re going to go play until someone tells us we can’t play in those events anymore, and then we’ll go find other events,” Dahmen said.They are also settling in for a protracted period of uncertainty, grappling with the possibility that the tour could be in turmoil for another year or more. It is an unfamiliar road for many of them, after all of these years in which the tour was the unquestioned destination of choice for many of the world’s top golfers, its business model familiar.“As members or as players,” Scott said, “we haven’t had to deal with anything like this before.” More